Heavy Industry Ministry scouts for 'Knowledge Partner' to promote FAME II

The Department of Heavy Industry (DHI), Ministry of Heavy Industries & Public Enterprises, has invited bids from NICSI- (National Informatics Centre Services Incorporated) empanelled management consulting partners that includes — Deloitte Touche Tohmatsu India, Ernst & Young, KPMG, Price Water House Coopers and Wipro — for being a 'Knowledge Partner' to the government's ambitious and recently announced FAME II scheme.

The Ministry says that the bidding process will begin on April 2, 2019 and the shortlisted partner will be selected quickly, as the contract signing process is scheduled for April 30, 2019. DHI says that with the government's intention of bringing about a paradigm shift in the automotive and transportation industry in the country, can be seen on the back of the earmarked Rs 10,000 crore under the second phase of FAME scheme. The focus area of the entire policy is electrification of public transport — buses, three-wheelers, shared cabs — in the country.

In addition, the FAME II scheme proposes establishing an EV charging infrastructure in the country too. For enabling a smoother transition and implementation of the scheme, the Central government has proposed that DHI engages with a knowledge partner. For this, DHI has invited bids for a knowledge partner for a period of at least a year, extendable up to three years.

What’s expected of the knowledge partner
The agency/knowledge partner is expected to work in tandem with the DHI staff and undertake activities including: Research Studies; Policy Support; Facilitating Ease of Doing Business; Identify investors & facilitation and Support tendering/EoI (expression of interest) process under FAME scheme.

Research Studies: The team will be required to undertake market research and comparative studies, analyse technologies, design and life cycle ownership costs of various type of EV models. They will are further expected to determine the estimated and potential penetration of EVs in the market. Assessing the present and future ownership, market and operational model for EVs in select geographies.

They would further need to help stakeholders assess and customise best international practices that will help encourage R&D and support the EV infrastructure too. Furthermore, the team will need to come out with projections on macro-economic indicators — impact on GDP, jobs and FDI among others. Undertake studies, assessment, examine current status and help expand the same.

Policy Support: The knowledge partner will further help in assess and benchmark leading practices that will help in understanding policy frameworks to promote hybrid and EVs in India and internationally. They will be further help in scenario analysis and assessing impact of various subsidy models, revisit policy to realign incentives to promote domestic manufacturing. In addition, they will need to provide support to determine eligibility, verify and support dissemination of subsidy.

Facilitate Ease of Doing Business: The company will also support the government by designing and enabling single window mechanism for incentives/subsidies for EVs. Help in outlining department specific business processes; MIS and grievance support for investors. Design ready to use guides and mapping, simplification of processes for availing subsidies.

Investor Identification and Facilitation: Identify investors and provide support to facilitate these investments for the country. They will further need to help the government if the ministry plans to host an Investment summit, by preparing detailed strategy and action plan for the 2-3 day event. Design and outline the agenda, minutes and day-long events topics, theme and partners among others, in addition to managing all the communication for relevant ministries.

Support in Tendering/EoI process under FAME scheme: Lastly, the Heavy Industry Ministry expects the knowledge partner to work with the government on designing the tendering/EoI process for selection of state government entities/Cities/STUs to extend demand incentives for e-buses and public transportation through OPEX models and provide grants for charging infrastructure. The knowledge partner is furthermore expected to help come out with designing and executing road show plans that will help the country promote e-mobility.

With this move, the first step towards applying the PPP (Public-Private-Partnership) model seems to have begun for the FAME II scheme. And the fact, that the government plans to finalise the partner within a span of less than 30 days, is commendable. What needs to be seen is how quickly things start moving forward.